Cite and describe two ways that the uniqueness of assets creates agency costs for shareholders.
Multiple choices are:
employees can demand a risk premium (higher compensation) for their effort to develop specialized talent that is not valuable to other employers
lenders can demand a risk premium (higher interest rate) for loaning against a unique asset (collateral)
new shareholders can demand a risk premium (higher required rate of return) for investing in a firm that uses unique assets
customers can demand a risk premium (lower price) for buying a product from a firm that uses unique assets
A and B
A and C
A and D
B and C
B and D
C and D
all but A
all but B
all but C
all but D
all are true